Page:United States Statutes at Large Volume 118.djvu/1198

 118 STAT. 1168 PUBLIC LAW 108–311—OCT. 4, 2004 ‘‘(8) ELIMINATION OF MARRIAGE PENALTY IN 15 PERCENT BRACKET.—With respect to taxable years beginning after December 31, 2003, in prescribing the tables under paragraph (1)— ‘‘(A) the maximum taxable income in the 15 percent rate bracket in the table contained in subsection (a) (and the minimum taxable income in the next higher taxable income bracket in such table) shall be 200 percent of the maximum taxable income in the 15 percent rate bracket in the table contained in subsection (c) (after any other adjustment under this subsection), and ‘‘(B) the comparable taxable income amounts in the table contained in subsection (d) shall be 1 2 of the amounts determined under subparagraph (A).’’. (d) 10 PERCENT RATE BRACKET.— (1) IN GENERAL.—Clause (i) of section 1(i)(1)(B) is amended by striking ‘‘($12,000 in the case of taxable years beginning after December 31, 2004, and before January 1, 2008)’’. (2) INFLATION ADJUSTMENT.—Subparagraph (C) of section 1(i)(1) is amended to read as follows: ‘‘(C) INFLATION ADJUSTMENT.—In prescribing the tables under subsection (f) which apply with respect to taxable years beginning in calendar years after 2003— ‘‘(i) the cost of living adjustment shall be deter mined under subsection (f)(3) by substituting ‘2002’ for ‘1992’ in subparagraph (B) thereof, and ‘‘(ii) the adjustments under clause (i) shall not apply to the amount referred to in subparagraph (B)(iii). If any amount after adjustment under the preceding sen tence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.’’. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2003. SEC. 102. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE CHILD TAX CREDIT. (a) ACCELERATION OF REFUNDABILITY.—Section 24(d)(1)(B)(i) (relating to portion of credit refundable) is amended by striking ‘‘(10 percent in the case of taxable years beginning before January 1, 2005)’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2003. SEC. 103. EXTENSION OF MINIMUM TAX RELIEF TO INDIVIDUALS. (a) IN GENERAL.—Subparagraphs (A) and (B) of section 55(d)(1) of the Internal Revenue Code of 1986 (relating to exemption amount for taxpayers other than corporations) are each amended by striking ‘‘2003 and 2004’’ and inserting ‘‘2003, 2004, and 2005’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2004. SEC. 104. EARNED INCOME INCLUDES COMBAT PAY. (a) CHILD TAX CREDIT.—Section 24(d)(1) (relating to portion of credit refundable) is amended by adding at the end the following new sentence: ‘‘For purposes of subparagraph (B), any amount excluded from gross income by reason of section 112 shall be treated 26 USC 55 note. 26 USC 24 note. 26 USC 1 note.

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